1. Areas covered by the Association of Interior REALTORS® Market Statistics include: Central/North Okanagan, Shuswap/ Revelstoke, South Okanagan/ South Peace River

October 2023 Fraser Valley Real Estate Board Statistics – Fraser Valley real estate market weakens as sales and prices continue to edge downward

SURREY, BC – Property sales and new listings in the Fraser Valley fell again in October as consumers continued to put home buying and selling decisions on hold in the face of elevated interest rates.

The The Fraser Valley Real Estate Board recorded 970 transactions on its Multiple Listing Service® (MLS®) in October, a drop of 12 per cent from the previous month and the fourth consecutive decrease since the 12- month high of 1,935 sales recorded in June.

At 2,535, new listings also fell again, decreasing by 11 per cent from September and by 28 per cent since peaking in May at 3,533.

“What we’re seeing in the Fraser Valley and indeed across the province is the impact of sustained high interest rates on the overall market,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “This has been the case since the latter half of the year so far, and we anticipate the trend will continue until we start to see some downward movement in the policy rate.”

Active listings in October were 6,580, up by less than 1 per cent over last month and up by 17 per cent over October 2022. The sales-to-active listings ratio was 15 per cent, creating balanced conditions in the overall market, with detached houses dipping into buyers’ market territory at 12 per cent. The market is considered balanced when the ratio is between 12 per cent and 20 per cent.

“As the market continues to adjust to the new rate realities, pricing and financing strategies become critical,” said FVREB CEO, Baldev Gill. “A knowledgeable professional REALTOR®, armed with the latest comparative market data and neighbourhood insights, can be the key to determining optimal market timing.”

Overall benchmark prices continued to slide for the third month in a row, losing 1.4 per cent compared to September. See below for price changes by housing category.

October 2023 Victoria Real Estate Board Statistics – Interest rates a large factor in Victoria real estate market

A total of 407 properties sold in the Victoria Real Estate Board region this October, 15.2 per cent fewer than the 480 properties sold in October 2022 and a 17.4 per cent decrease from September 2023. Sales of condominiums were down 7.2 per cent from October 2022 with 141 units sold. Sales of single family homes decreased 16.1 per cent from October 2022 with 193 sold.

“Overall, property sales drifted down in October compared to the previous month, likely due to consumers continuing to navigate interest rates higher than those seen in nearly two decades,” said Victoria Real Estate Board Chair Graden Sol. “The uncertainty around the direction of the Bank of Canada rate announcement in mid-October may have caused some buyers to push their purchasing plans into the future because it was unclear if rates were going to be hiked again or remain stable. Generally speaking, when we have periods of static interest rates, consumer confidence returns to the market. We can recall earlier in the year when rates plateaued; we saw an uptick in sales in the weeks after. However, when rates began to rise again, we saw consumer confidence falter.”

There were 2,756 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of October 2023, an increase of 2.1 per cent compared to the previous month of September and a 25.7 per cent increase from the 2,192 active listings for sale at the end of October 2022. “The good news in October was that we continued to see a slow and steady increase in the number of available properties for sale,” adds Sol. “This additional inventory is positive for buyers who will have more selection than they’ve experienced in recent years. The real estate market tends to slow down in late fall and winter, but there are still a good number of active buyers. If you’re thinking about making a move during the colder months, reach out to your local REALTOR® to plan your strategy.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in October 2022 was $1,257,100. The benchmark value for the same home in October 2023 increased by 3.9 per cent to $1,305,900, which is down from September’s value of $1,312,200. The MLS® HPI benchmark value for a condominium in the Victoria Core area in October 2022 was $575,300, while the benchmark value for the same condominium in October 2023 increased by 1.8 per cent to $585,600, which is down from the September value of $589,600.

October 2023 Real Estate Board of Greater Vancouver Statistics – Metro Vancouver housing market holds steady in October

VANCOUVER, BC – November 2, 2023 – An increase in newly listed properties is providing more choice to home buyers across Metro Vancouver , but sales remain below long-term averages. 

The Real Estate Board of Greater Vancouver (REBGV) reports that residential sales2 in the region totalled 1,996 in October 2023, a 3.7 per cent increase from the 1,924 sales recorded in October 2022. This total is 29.5 per cent below the 10-year seasonal average (2,832) for October.

“With properties coming to market at a rate roughly five per cent above the ten-year seasonal average, there seems to be a continuation of the renewed interest on the part of sellers to participate in the market that we’ve been watching this fall,” Andrew Lis, REBGV’s director of economics and data analytics said. “Counterbalancing this increase in supply, however, is the fact sales remain almost 30 per cent below their ten-year seasonal average, which tells us demand is not as strong as we might expect this time of year.”

There were 4,664 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in October 2023. This represents a 15.4 per cent increase compared to the 4,043 properties listed in October 2022 and is 4.8 per cent above the 10-year seasonal average (4,449) for the month.

The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 11,599, a 12.6 per cent increase compared to October 2022 (10,305). This change is also 0.6 per cent above the 10-year seasonal average (11,526).

Across all detached, attached and apartment property types, the sales-to-active listings ratio for October 2023 is 17.9 per cent. By property type, the ratio is 12.9 per cent for detached homes, 20.9 per cent for attached, and 21.5 per cent for apartments.

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

“With more supply in the form of resale inventory, and weaker demand in the form of slower sales, we’ve seen market conditions overall adjust towards more balanced conditions. It’s noteworthy that the multifamily segment remains more active than the detached segment at this time,” Lis said. “While the highest borrowing costs we’ve seen in over a decade continue to constrain affordability, a silver lining for buyers is that price increases have abated with these more balanced market conditions, meaning purchasing power is holding steady for the moment.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,196,500. This represents a 4.4 per cent increase over October 2022 and a 0.6 per cent decrease compared to September 2023.

Sales of detached homes in October 2023 reached 577, a 0.7 per cent decrease from the 581 detached sales recorded in October 2022. The benchmark price for a detached home is $2,001,400. This represents a 5.8 per cent increase from October 2022 and a 0.8 per cent decrease compared to September 2023.

Sales of apartment homes reached 1,044 in October 2023, a 4.9 per cent increase compared to the 995 sales in October 2022. The benchmark price of an apartment home is $770,200. This represents a 6.4 per cent increase from October 2022 and a 0.2 per cent increase compared to September 2023.

Attached home sales in October 2023 totalled 356, a 6.6 per cent increase compared to the 334 sales in October 2022. The benchmark price of a townhouse3 is $1,100,500. This represents a 6 per cent increase from October 2022 and a 0.2 per cent increase compared to September 2023.

Statistics for Related Areas

• Fraser Valley Real Estate Stats
• Victoria Real Estate Stats
• Okanagan Real Estate Stats

Statistics for Related Areas

• September 2023 Vancouver Real Estate Stats
• August 2023 Vancouver Real Estate Stats
• July 2023 Vancouver Real Estate Stats

The British Columbia Real Estate Association (BCREA) reports that a total of 7,103 residential unit sales were recorded in Multiple Listing Service^® (MLS^®) systems in July 2023, an increase of 25.9 per cent from July 2022. The average MLS^® residential price in BC was $967,948, up 5.6 per cent compared to July 2022. The total sales dollar volume was $6.9 billion, representing a 33 per cent increase from the same time last year. 

“Home sales are up significantly since this time last year,” said BCREA Chief Economist Brendon Ogmundson. “That said, there are signs that the most recent Bank of Canada rate increases are slowing activity as mortgage rates climb to their highest levels in over a decade.”

Active listings in the province were flat compared with July 2022, at just over 31,000 total listings and were up for the second consecutive month on a monthly, seasonally adjusted basis, as new listings return to more normal levels and sales moderate. 

Year-to-date BC residential sales dollar volume was down 20.9 per cent to $46.3 billion, compared with the same period in 2022. Residential unit sales were down 16.3 per cent to 47,508 units, while the average MLS^® residential price was down 5.4 per cent to $975,232.  

Written by Mike Stewart Vancouver Realtor on October 21, 2023

Across Vancouver and British Columbia, condo assignments remain a popular topic regardless of market conditions

This article will delve into the intricacies of selling a presale condo in BC through assignments of contract, providing a comprehensive guide for potential sellers and buyers.

What is as Presale Condo Assignment of Contract?

A condo assignment is a legal transaction where the original buyer of a presale condo (a condo not yet constructed) transfers their purchase rights and obligations to another buyer before the property is completed.

Essentially, it’s a sale of the contract or agreement between the initial buyer and the developer, allowing a new buyer to step into the original buyer’s position.

In the context of presale condos and townhomes, this means that the original buyer is selling their interest in the condo or townhouse before it is built.

Key Terms to Understand

The transactions have their own specific jargon that can be very confusing to the uninitiated.

Here is a list of terms that will make it easier to understand presale condo assignment sales.

• Assignor – this is the original presale condo buyer who purchased the unit from the developer.
• Assignee – this is the purchaser of the assignment from the assignor.

Before we discuss how to sell or assign a preconstruction condo in detail, we need to clarify what a presale is.

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What is a Presale Condo?

A presale condo is a property unit that is sold to buyers before the building has been fully constructed.

Developers in BC often pre-sell condos and townhouses to secure necessary funding for their projects.

Buyers are essentially purchasing a promise that a condo will be built to certain specifications at a future date.

A condo assignment sale is when the original buyer of a presale condo sells their rights and obligations to another buyer through a legal process called assignment of contract.

This process, while complex, can be a lucrative opportunity for both buyers and sellers if navigated correctly with professional assistance.

Step-by-Step Process of a Condo Assignment Sale

Below is a step-by-step explanation of how a presale condo assignment sale works from start to finish. Should you have any questions, feel free to reach out to me at 604-763-3136.

1. Developer’s Assignment Policy Check: Before anything else, the assignor’s real estate agent should verify if the developer permits assignments. It’s also essential to determine whether the developer allows the public marketing of the assignment.
2. Marketing the Assignment: Once permissions are confirmed, the assignor’s Realtor will market the property. Depending on the region and developer’s policies, this could be on the MLS or through other channels. For instance, in the Lower Mainland, many developers near Vancouver prohibit MLS listings for assignments, but it’s more common in places like the Fraser Valley.
3. Receiving and Reviewing Offers: When a potential assignee shows interest, their Realtor will prepare and submit an offer to the assignor’s Realtor. The assignor and their agent will then review this offer, potentially leading to negotiations.
4. Securing an Accepted Offer: After negotiations, if both parties agree on terms, they’ll have an accepted offer in place. This doesn’t mean the sale is complete, but it’s a significant step forward.
5. Developer Approval: With an accepted offer, the assignor’s Realtor must submit it to the developer for review. Developers usually have a dedicated team or work with a project marketing company to review these offers. They’ll assess the assignment and present it to the developer for final approval. This step often involves paying an assignment fee to the developer. More on this below.
6. Finalizing the Assignment Sale: Once the developer gives the green light:
   • The assignor pays the developer any required assignment fees. More on this below.
   • The assignee reimburses the assignor for their initial deposits.
   • The deposits that the assignor originally gave to the developer are then transferred to the assignee.
   • After this occurs, there usually is wait before completion of the property occurs.
7. Completion of the Sale: The assignee, now stepping into the shoes of the original buyer, will finalize the property’s purchase. Once the development is complete, they’ll become the official owner of the condo or townhouse.
8. Understanding Assignment Fees: It’s crucial for both parties to be aware of any assignment fees. These fees, charged by the developer, can range significantly. They’re typically outlined in the original presale purchase contract and need to be settled before the developer approves the assignment sale.

Condo Assignment Contracts Require Developer Permission

Condo assignments of contract are unique in that the permission of the original developer is required in writing in order for the transaction to go forward.

As mentioned above, condo assignment purchase contracts are essentially 3 way contracts that require the written consent of the assignor (original purchaser), the assignee (new buyer), and the developer.

The developer is not required to give permission and it will state that the developer can withhold permission of an assignment for any reason.

In practice, developers often do not permit assignments or may stop allowing assignment sales and marketing unexpectedly.

The key is to work with a Realtor who knows assignment sales who has the connections and ability to find out the developers current views on allowing assignments in their projects.

We can help with this as we sell assignments regularly and have deep long term connections relationships with all of the major developers and marketing companies in BC.

What is an Assignment Fee in BC?

An assignment fee is a sum of money developers charge to allow an assignment of contract to go forward.

Developers typically charge an assignment fee of anywhere from a few dollars up to 5-10% of the assignment purchase price.

Payment of the assignment fee is required before a developer will sign the assignment sale contract.

The amount the developer charges for an assignment is typically laid out in the presale purchase contract.

The assignment fee needs to be paid to the developer when the developer gives permission to allow the assignment of contract to go forward.

Developers will often allow lower assignment fees for assignments that happen between immediate family members.

Condo Assignment Deposits Explained

Once the developer gives permission for the assignment sale in writing, the assignee (assignment buyer) will reimburse the assignor (seller of the presale/original buyer) for the original deposits paid to the developer by the original buyer (assignor/seller of the presale).

The deposits held by the developer will have their ownership transferred or “assigned” from the assignor (original presale buyer/seller) to the assignee (assignment buyer).

How are Condo Assignment Deposits Held?

Assignment sale deposits are typically paid into by assignee’s buyers agents trust account once the assignee removes subjects on their assignment purchase contract.

Here are two options for the funds that an assignee reimburses an assignor for their original deposits held by the developer:

• Released to the assignor upon receiving written permission from the developer for the assignment making the assignment contract firm and binding on all parties.
• Held in a trust account to be released to the assignor upon completion of preconstruction property.

Why Assign a Presale Condo?

There are several reasons why an original buyer might want to sell their presale condo.

Market conditions may have changed, making it profitable to sell the contract for a higher price than the original purchase price.

Alternatively, the original buyer’s personal circumstances may have changed, making it difficult or undesirable to complete the original purchase.

Legal Framework for Assignments in BC

In BC, the Real Estate Development Marketing Act (REDMA) governs the sale of presale condos and assignments of contract.

Under REDMA, developers must provide a disclosure statement to presale condo buyers that includes information about the developer, the development, and the rights and obligations of the parties.

This includes the buyer’s right to assign the contract and any restrictions or requirements the developer may have regarding assignments.

When buying a presale condo assignment, it is imperative that the purchaser receives and reviews the disclosure statement and all of the amendments to the disclosure among other documents to make an informed decision about a purchase.

Condo Assignment Risks

Presale condo assignments are extremely complex transactions.

The considerable risks of assignments can be avoided by hiring a qualified Realtor, tax accountant, and real estate lawyer.

Below is an explanation of the risks for both assignors and assignees in an assignment sale.

Risks for Assignors:

1. Developer’s Discretion:
   • Even if the original purchase agreement allows for assignments, the developer can withhold permission. If the assignor has already made plans based on the assumption of selling the assignment, this can lead to significant disruptions.
2. Financial Liability:
   • If the assignee defaults or fails to complete the purchase, the assignor might be left to complete the original purchase. If the assignor’s circumstances have changed, they might not be prepared or financially capable of doing so.
3. Condo Project Does Not Complete or is Cancelled:
   • In BC, a presale condo might get cancelled due to unforeseen construction challenges, financial difficulties faced by the developer, changes in market conditions, failure to secure necessary permits, or legal disputes. Though project cancellations rare, it can happen and an assignor may face legal action from assignee who has paid a premium to the assignor for a condo that does not get delivered.
4. Tax Implications:
   • The Canada Revenue Agency (CRA) might view the sale as a business transaction rather than a capital gains transaction, leading to a higher tax liability for the assignor. Check in with a qualified tax accountant before thinking of selling a presale condo in BC.
5. Reputation with Developers:
   • If an assignor frequently engages in assignment sales, they might develop a reputation with developers. This could impact their ability to purchase presale condos in the future, especially if developers view them as speculators.

Risks for Assignees:

1. Incomplete Information:
   • Since the property isn’t built yet, the assignee is buying based on plans and promises. The final product might differ from initial plans, leading to dissatisfaction.
2. Market Volatility:
   • If the real estate market declines after agreeing to the assignment purchase, the assignee might end up paying more than the market value by the time the condo is completed.
3. Financing Challenges:
   • Securing financing for assignment sales can be more challenging than for traditional real estate purchases. Some lenders might be unfamiliar with or wary of the complexities of assignment sales.
4. Potential Additional Costs:
   • The assignee might be unaware of additional costs or changes made by the developer after the original purchase agreement. This can lead to unexpected financial burdens.
5. Legal Implications:
   • If the assignor doesn’t provide all necessary disclosures or if there are discrepancies in the assignment agreement, the assignee might face legal challenges or complications.
6. Condo Project Does Not Complete or is Cancelled:
   • In BC, a presale condo might get cancelled due to unforeseen construction challenges, financial difficulties faced by the developer, changes in market conditions, failure to secure necessary permits, or legal disputes. Though project cancellations rare, it can happen and an assignee who has paid a premium to the assignor may not get a condo.

Presale Condo Assignment Sales FAQ

1. What is a condo assignment?
   • A condo assignment is the legal transfer where the original buyer (assignor) of a presale condo sells their contractual rights and obligations to another buyer (assignee) before the property’s completion.
2. How does a condo assignment differ from a regular condo sale?
   • Unlike a regular condo sale where the property is already built and ownership is transferred, a condo assignment involves selling the contractual rights to a condo that hasn’t been constructed yet. Essentially, it’s the transfer of a promise for a future property.
3. Why might someone consider a condo assignment sale?
   • There are various motivations. Market conditions might make it profitable to sell the contract at a higher price than the original purchase. Alternatively, the original buyer’s personal circumstances might change, making it challenging or undesirable to complete the original purchase.
4. Are there specific legal regulations governing condo assignments in BC?
   • Yes, in BC, the Real Estate Development Marketing Act (REDMA) oversees the sale of presale condos and condo assignments. It ensures buyers are informed about their rights, the developer, and the development.
5. Is the developer’s permission mandatory for a condo assignment transaction?
   • Absolutely. The original developer’s written permission is essential for a condo assignment. It’s worth noting that developers can withhold this permission for various reasons.
6. What exactly is an assignment fee in the context of condo assignments?
   • An assignment fee is a charge set by developers, which can range from a nominal amount to up to 5-10% of the assignment purchase price. This fee must be paid before the developer approves the condo assignment sale.
7. How are deposits managed in condo assignment sales?
   • After the developer approves the condo assignment in writing, the assignee reimburses the assignor for the initial deposits made to the developer. The ownership of these deposits then transfers to the assignee.
8. Is it crucial to collaborate with a Realtor experienced in condo assignments?
   • Highly recommended. A Realtor with condo assignment expertise will offer invaluable insights and connections, ensuring a more streamlined process for all involved.
9. Can developers alter their position on permitting condo assignments?
   • Yes, developers’ views on allowing condo assignments can change. They might halt assignment sales or marketing without notice, emphasizing the importance of staying informed and working with knowledgeable professionals.
10. Before entering a condo assignment agreement, what should I consider?

• It’s essential to grasp the legal and financial implications, seek advice from a real estate professional, and acquaint yourself with the Real Estate Development Marketing Act (REDMA). Proper research, understanding, and expert guidance are pivotal for a successful condo assignment transaction.

11. Who typically pays the Assignment Fee?

• The assignor usually covers the assignment fee to the developer. However, in certain situations, especially if the assignor faces financial challenges, the assignee might bear this cost.

12. Are Presale Condo Assignment Legal?

• Yes. Presale condo contract assignments are legal, despite some less informed politicians ruminating on potentially banning them.

Pro Tips for Navigating Condo Assignments

1. Understand the Contract and Disclosure Statement:
   • Before entering into an assignment agreement, thoroughly review the original purchase contract and presale disclosure statement. Look for any clauses or restrictions related to assignments to ensure you’re not breaching the agreement. The disclosure statement is designed to allow a buyer (either assignee or assignor) make an informed decision about a purchase. Read and understand it.
2. Engage Professionals:
   • Work with a Realtor experienced in condo assignments. They’ll have insights and connections that can be invaluable. Additionally, consult with a real estate lawyer to ensure all legalities are addressed.
3. Research the Developer:
   • Understand the reputation of the condo’s developer. A reputable developer is less likely to cancel a project or deny assignment requests without valid reasons.
4. Anticipate Fees:
   • Be aware of the assignment fees charged by developers. These can vary and might impact the profitability of the assignment. This can also have an impact on the negotiating strategy if the assignment fee is quite high or low.
5. Stay Updated on Market Conditions:
   • The real estate market can be volatile. Regularly assess market conditions to determine the best timing for an assignment sale.
6. Clear Communication:
   • Ensure open communication lines with both the assignee and the developer. Misunderstandings can lead to complications or lost opportunities.
7. Document Everything:
   • Keep a record of all communications, agreements, and transactions related to the assignment. This can be crucial if disputes arise.
8. Consider Tax Implications:
   • Consult with a tax professional to understand before doing anything to understand any potential tax liabilities or benefits arising from the assignment sale or purchase.
9. Plan for Financing Challenges:

• If you’re an assignee, understand that not all lenders are familiar with assignment sales. It might be more challenging to secure financing, so start this process early.

11. Stay Informed on Legal Regulations:

• Familiarize yourself with the Real Estate Development Marketing Act (REDMA) and any other local regulations governing assignments in your area.

By following these pro tips, both assignors and assignees can navigate the complex world of condo assignments with greater confidence and success.

Benefits of Condo Assignments

Condo assignments offer a range of advantages for various parties involved, from the original buyer to the new buyer and even the developer. Here’s a breakdown of the benefits:

1. Flexibility for Original Buyers: Life is unpredictable. Financial situations, job relocations, or changes in family dynamics can alter one’s ability or desire to complete a presale condo purchase. Assignments provide an exit strategy for original buyers who no longer wish to, or cannot, finalize the purchase.
2. Potential for Profit: If the real estate market has appreciated since the original purchase, the original buyer (assignor) might sell the assignment for more than their initial purchase price, earning a profit before the condo is even completed.
3. Opportunity for New Buyers: Assignments can be a golden opportunity for new buyers (assignees) to step into a contract at potentially below current market prices. They might also get access to units in sold-out developments or in prime locations that are no longer available directly from the developer.
4. Avoiding Marketing and Sales Costs: For developers, allowing assignments can mean that they don’t have to re-market and sell a unit if the original buyer backs out, saving them potential additional costs.
5. Immediate Access to New Developments: New buyers can gain access to developments that are closer to completion, reducing the waiting time compared to buying a new presale.
6. Financial Liquidity for Original Buyers: By selling their rights through an assignment, the original buyer can free up any deposits or funds tied to the presale condo, aiding their financial liquidity.
7. Reduced Risk of Project Cancellation: New buyers stepping into assignments might do so in projects that are further along, thereby potentially reducing the risks associated with project delays or cancellations.

Understanding the benefits of condo assignments can help both original and new buyers make informed decisions, ensuring that they leverage the opportunities this unique real estate transaction offers.

Conclusion

Selling a presale condo in BC through an assignment of contract can be a complex process, but it can also be a profitable venture if done correctly. It allows the original buyer to potentially make a profit before the completion of the condo, and it provides an opportunity for another buyer to step into the original buyer’s shoes and benefit from any increase in the property’s value.

However, it’s important to understand the legal and financial implications of such a transaction. The Real Estate Development Marketing Act (REDMA) provides a regulatory framework for these transactions, but it’s crucial to consult with a real estate and tax professional and a lawyer to navigate the process effectively.

In conclusion, selling a presale condo in BC through an assignment of contract is a unique aspect of the BC real estate market. It offers opportunities for profit and flexibility for buyers, but it also requires careful consideration and understanding of the process. As with any real estate transaction, due diligence, knowledge, and professional advice are key to success.

1. Areas covered by the Association of Interior REALTORS® Market Statistics include: Central/North Okanagan, Shuswap/ Revelstoke, South Okanagan/ South Peace River

September 2023 Fraser Valley Real Estate Board Statistics – Fraser Valley market balanced, as demand softens and prices edge lower

SURREY, BC – Continued slowing sales and a healthy rise in new listings in September has brought the Fraser Valley housing market into balance. Three months of declining sales has seen Benchmark prices dip for a second straight month.

The Fraser Valley Real Estate Board recorded 1,100 sales on its Multiple Listing Service® (MLS®) in September 2023, a decrease of 13.6 per cent compared to August. Sales were up 22.6 per cent compared to September 2022.

New listings rose to 2,860 in September, an increase of 9.1 per cent over last month, and 25.8 per cent above this time last year. Active listings have been rising since last December and grew again in September by 3.8 per cent to 6,532, 3.5 per cent below the ten-year average.

“With inventory levels continuing on a slow and steady rise, together with slow sales, what we are seeing is a more balanced market,” said Narinder Bains, Chair of the Fraser Valley Real Estate Board. “If this trend continues, increased new listings will help to maintain a balanced market, giving buyers greater choice.”

The market for detached homes softened again in September, with a sales-to-active listings ratio of 14 per cent, down from 16 per cent in August. Demand for townhomes and apartments remained stronger (31 per cent and 25 per cent, respectively). The overall sales-to-active listing ratio is at 17 per cent, representing a balanced market. The market is considered balanced when the sales-to-active-listings ratio is between 12 per cent and 20 per cent.

Benchmark prices in the Fraser Valley dipped compared to last month with losses of less than one per cent across all property types.

“With interest rate uncertainty still in play, September sales were slower than the trends for this time of year,” said FVREB CEO, Baldev Gill. “Market activity and prices can vary from neighbourhood to neighbourhood, so consulting your REALTOR® will be a vital step for buyers and sellers who need expert guidance and advice to navigate local market conditions.”

On average properties spent a minimum of three weeks on the market before selling, with townhomes and apartments moving faster (23 and 24 days, respectively) than detached homes (29 days).

September 2023 Real Estate Board of Greater Vancouver Statistics – As inventory increases, price gains relent in Metro Vancouver to begin the fall season

VANCOUVER, BC – October 4, 2023 – The month-over-month price gains seen earlier this year abated in the Metro Vancouver1 housing market in September due to a seasonal decline in sales and a modest increase in inventory levels across the region.

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales2 in the region totalled 1,926 in September 2023, a 13.2 per cent increase from the 1,701 sales recorded in September 2022. This was 26.3 per cent below the 10-year seasonal average (2,614).

“A key dynamic that we’ve been watching this year has been the reluctance of some homeowners to list their homes given that mortgage rates are the highest they’ve been in over ten years,” Andrew Lis, REBGV’s director of economics and data analytics said. “With fewer listings coming to the market earlier this year than usual, inventory levels remained very low, which led prices to increase throughout the spring and summer months.”

There were 5,446 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in September 2023. This represents a 28.4 per cent increase compared to the 4,243 homes listed in September 2022.

This was 5.2 per cent above the 10-year seasonal average (5,179).

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 11,382, a 9.2 per cent increase compared to September 2022 (10,427). This was 6.2 per cent below the 10-year seasonal average (12,136).

Across all detached, attached and apartment property types, the sales-to-active listings ratio for September 2023 is 17.7 per cent. By property type, the ratio is 12.6 per cent for detached homes, 21.6 per cent for townhomes, and 21.3 per cent for apartments.

Analysis of the historical data suggests downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.

“In contrast to the spring and summer, the September data suggests there may be a renewed interest on the part of sellers to participate in the market, with new listing activity rising back in line with long-term historical averages. This upward shift in new listings has allowed overall inventory levels to recover modestly from the low levels we saw earlier this year,” Lis said. “When we pair this dynamic with the slowdown in sales that typically occurs in the fall as a result of seasonal patterns, the outcome is more balanced market conditions overall.”

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,203,300. This represents a 4.4 per cent increase over September 2022 and a 0.4 per cent decrease compared to August 2023.

Sales of detached homes in September 2023 reached 572, a 7.5 per cent increase from the 532 detached sales recorded in September 2022. The benchmark price for a detached home is $2,017,100. This represents a 5.8 per cent increase from September 2022 and a 0.1 per cent decrease compared to August 2023.

Sales of apartment homes reached 988 in September 2023, an 11.3 per cent increase compared to the 888 sales in September 2022. The benchmark price of an apartment home is $768,500. This represents a 5.8 per cent increase from September 2022 and a 0.2 per cent decrease compared to August 2023.

Attached home sales in September 2023 totalled 352, a 28.5 per cent increase compared to the 274 sales in September 2022. The benchmark price of an attached home is $1,098,400. This represents a 5.3 per cent increase from September 2022 and a 0.5 per cent decrease compared to August 2023.

Statistics for Related Areas

• Fraser Valley Real Estate Stats
• Victoria Real Estate Stats
• Okanagan Real Estate Stats

Statistics for Related Areas

• August 2023 Vancouver Real Estate Stats
• July 2023 Vancouver Real Estate Stats
• June 2023 Vancouver Real Estate Stats

September 2023 Victoria Real Estate Board Statistics – While value of homes in Victoria remains stable, the cost to own continues to rise

A total of 493 properties sold in the Victoria Real Estate Board region this September, 20.2 per cent more than the 410 properties sold in September 2022 and a 9.4 per cent decrease from August 2023. Sales of condominiums were up 23 per cent from September 2022 with 155 units sold. Sales of single family homes increased 3.2 per cent from September 2022 with 228 sold.

“What we saw in our market last month was a continuation of the seasonal market trend we expect in a typical year as we move into fall,” said Victoria Real Estate Board Chair Graden Sol. “We have seen a slight return to a more balanced market in recent weeks. Our inventory right now features almost a thousand more listings for sale than we saw than at the start of this year.”

There were 2,699 active listings for sale on the Victoria Real Estate Board Multiple Listing Service® at the end of September 2023, an increase of 8.4 per cent compared to the previous month of August and a 17.3 per cent increase from the 2,300 active listings for sale at the end of September 2022.

“That increase in inventory means there are more properties for prospective buyers,” Sol notes. “More inventory also means buyers may have more time to shop, though in many of our local markets a wellpriced property will sell rapidly, and we’re still seeing some multiple offer situations. The challenge of the day is that there are many buyers who hope to find homes in the missing middle – families who seek two- or three-bedroom homes at attainable price points – who are challenged by our current interest rate environment. Though housing prices have remained reasonably stable this year, the cost of carrying a mortgage has increased tremendously. This means that many first-time buyers and families are unable to purchase homes in our current market. With so many variables at play in each of the micro markets within Greater Victoria, it’s a good time to meet with your Realtor to discuss strategy if you are considering a move.”

The Multiple Listing Service® Home Price Index benchmark value for a single family home in the Victoria Core in September 2022 was $1,299,500. The benchmark value for the same home in September 2023 increased by 1 per cent to $1,312,200, which is down from August’s value of $1,323,900. The MLS® HPI benchmark value for a condominium in the Victoria Core area in September 2022 was $581,500, while the benchmark value for the same condominium in September 2023 increased by 1.4 per cent to $589,600, which is up from the August value of $582,000.